Kraft Heinz could be hit with a junk credit rating by mid-2021 if it fails to turn itself around, S&P Global Ratings said Friday.
S&P said results for the maker of Kraft Macaroni & Cheese and Heinz ketchup have been weaker than it expected, and the company needs to cut debt relative to a measure of earnings. The credit grader said it is worried about the risks Kraft Heinz could face in the second half of 2019, including higher commodity costs and lower stocking at retailers.
Kraft Heinz carries the lowest investment-grade rating from all three major graders. With about $30.3 billion of long-term debt outstanding, the company is among the 20 largest issuers of debt in the lowest tier of investment-grade, excluding financial companies.
